22.01.2020 Labour law

Changes in labour law 2020

On 1 January 2020, several changes in labour law have entered into force, important from the point of view of both employers and employees. The changes include, among others, a significant increase in the minimum wage.

January 2020 – Labour Code revised

January is an important month for employees and employers. Since 1 January, a number of new acts concerning labour law have come into force. The most important amendment provides for an increase in the minimum wage and an increase in the minimum national gross hourly rate. The rules of granting and calculating the seniority bonus and night work allowance have also been changed. This year, employees and employers will also experience a stricter trade limitation on Sundays.

Minimum wage

Since 1 January 2020, the minimum wage in Poland has amounted to 2600 PLN gross in accordance with the Regulation of the Council of Ministers of 10 September 2019. This represents an increase of PLN 350 per month for all persons employed on a full-time basis and under an employment contract. Compared to 2015, the minimum wage has increased by as much as 850 PLN, and it is worth noting that the government plans further increases in the coming years.

Minimum gross hourly rate

The regulation of 10 September 2019 also includes an increase in the minimum national hourly rate for work carried out under a contract of mandate or under service contracts. Since 1 January, the minimum hourly rate has amounted 17 PLN gross, not to 14.70 PLN as before. The rise is associated with an increase in the minimum wage and is aimed at reducing the abuse of civil law contracts by employers.

Seniority bonus

The rules for granting the seniority bonus have also been changed. The amendment assumes the exclusion of the seniority bonus from the minimum wage. It should be remembered that an employee is entitled to this bonus after having achieved a fixed period of employment defined by the separate regulations, the provisions of the collective agreement, the Act on the collective agreement, the remuneration policy, the contract of employment or cooperative contract of employment or the statute defining the rights and obligations of the parties covered by the employment agreement.

Night work allowance

With an increase in the minimum wage, night workers will receive a larger allowance, as it depends on the minimum wage and amounts to 20% of the hourly rate based on the minimum gross wage. However, the legislator has defined under the term “night work” the hours between nine o’clock in the evening and seven o’clock in the morning, but employers may modify this time frame in an additional internal company act.

Trading ban on Sundays and holidays 2020

Since January 2020 the rules for trading on Sundays have changed. So far, the legislator has provided for two trading Sundays per month. Since the beginning of the new year the ban on trading on Sundays has been significantly extended.

In 2020, there are only 7 Sundays defined by law as trading Sundays. The ban on trading on Sundays will not cover the following dates:

  • 26 January 2020,
  • 5 April 2020,
  • 26 April 2020,
  • 28 June 2020,
  • 30 August 2020,
  • 13 December 2020,
  • 20 December 2020.

On other Sundays and holidays of 2020 (except 24 December and Saturdays immediately preceding Easter Day, when trade is only possible until 2 p.m.) it is forbidden to perform trade-related activities and it is forbidden to entrust an employee or an employed person with all trade-related tasks (except for the companies and retail premises specified in Article 6 Chapter 2 of the Act of 10 January 2018 of retail trade limitation on Sundays and Holidays and on some other days).

Violation of the trading ban by an entrepreneur is punishable by a fine in the amount of PLN 1 000 to 100 000 or restriction of freedom for malicious or persistent violation of new provisions of the Act of retail trade limitation.

Read also: Amendments to The Polish Labour Code in September

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